Recent changes to the Uniform Accountancy Act (UAA), the accounting profession’s model law developed by the American Institute of CPAs (AICPA) and the National Association of States Boards of Accountancy (NASBA), offers states a standardized way to adopt an additional pathway to CPA licensure. This move comes in response to the shrinking talent pipeline, which has prompted many states to consider and implement legislation that increases flexibility for current and prospective CPAs.
In Michigan, similar legislation is on the horizon. As MICPA President and CEO Bob Doyle, recently shared insights into the MICPA’s role in guiding the effort.
Now that the AICPA and NASBA have finalized these UAA changes, what is the MICPA’s stance on introducing an additional licensure pathway?
Bob Doyle: The CPA talent shortage has been on everyone’s mind for a while now, and the MICPA has joined the effort alongside other state societies, the AICPA and NASBA to address it. We’ve seen progress, but the number of CPAs eligible for retirement still far exceeds the number of folks graduating from accounting programs and becoming CPAs. Our businesses in Michigan, who rely on CPAs for all those critical business functions, like tax planning, auditing, risk assessment and forecasting, are shouldering the burden of those impacts. There just aren’t enough firms and practitioners to go around.
Obviously, the talent shortage is a multifaceted issue, and the profession, as a whole, has been very proactive about identifying the different factors at play, including barriers to entry. On one hand, what CPAs do is fundamentally important to the overall success or failure of the clients they serve, and so expectations of what it takes to be a CPA are definitely high. On the other hand, the 150-hour requirement places a significant financial burden on those interested in pursuing the credential, and we’ve seen in various studies how that directly affects students’ decisions to major in accounting. So, I think it’s apparent that there’s a need for the current licensure model to adapt and evolve.
Our goal is to align Michigan’s CPA licensure requirements with those of other states and the AICPA. MICPA plans to lead these efforts in our state to ensure that any changes made continue to uphold the values, integrity and high professional standards that make the CPA credential so respected.
What would a new pathway to becoming a CPA look like in Michigan?
Bob Doyle: It’s important to emphasize that this new pathway offers an alternative to the 150-hour pathway and is not a replacement for that route. In Michigan, we would want any new, additional option to meet some expectations, like:
- A bachelor’s degree that includes considerable accounting and business coursework.
- Two years of relevant experience in the workplace, supervised and validated by a licensed Michigan CPA.
- Successfully passing the Uniform CPA Exam.
As with other states considering similar legislation, the creation of an additional pathway would use real-world experience to supplement a candidate’s academic achievement, not replace it. Everything that makes the CPA license prestigious would remain intact.
How would these changes benefit the Michigan business community?
Bob Doyle: The CPA shortage is impacting both accounting firms and the broader business community in our state. While firms are working hard to attract and retain talent, other businesses are struggling to find the accounting services they need because firms and practitioners are already stretched thin by high demand.
Introducing legislation to modernize Michigan’s licensure model, including individual practice privilege, would immediately expand the state’s accounting pipeline and begin to address some of these issues in pivotal ways:
- Overcomes the cost barriers associated with the 150-hour requirement. Offering a pathway that adopts a learn and earn alternative would make the profession more accessible to those who can’t afford the additional class time.
- Allowing candidates to enter the profession sooner drives faster, long-term career development, which leads to higher employee retention among firms.
- Individual practice privilege allows out‑of‑state CPAs to practice in Michigan, attracting qualified talent to Michigan clients in need of their services.
How would this new pathway maintain the ethical standards and integrity of the CPA profession?
Bob Doyle: The foundation of CPA licensure in Michigan remains the same: passing the Uniform CPA Exam — one of the most challenging professional exams. Whether a candidate has completed 150 hours of coursework or takes the new pathway with a qualifying bachelor’s degree and two years of supervised experience, passing the Exam will demonstrate their professional readiness and expertise.
I think this really puts the onus on regulators and firms, working closely with the MICPA, to ensure that the on-the-job experience candidates receive provides the practical skills they need to succeed. Since each pathway to CPA licensure should be equally rigorous.
Likewise, our approach to individual practice privilege would align with the current national standard. Our collaboration with regulators, educational institutions and accounting firms has set a strong foundation for applying that standard to Michigan.
When will you introduce this legislation and what comes next?
Bob Doyle: The bill has already been drafted, and we’re currently working to secure sponsors in the legislature. We expect it to be introduced within the next few weeks.
Once it’s introduced, MICPA will notify members and issue a call to action to contact their elected officials in support of this new CPA licensure pathway.
From there, we’ll closely monitor its progress through the legislative process. Given the strong support behind the proposal, I’m optimistic about its chances — and MICPA is committed to leading the charge and ensuring the profession’s voice is heard every step of the way.